Dismal Attendance to Hurt AMC Entertainment (AMC) Q4 Earnings

AMC Entertainment (NYSE:AMC) Holdings, Inc. AMC is likely to register a decline in the bottom line when it reports fourth-quarter 2020 results. In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate by 22.3%.

Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter bottom line is pegged at a loss of $3.39 per share, against an earnings of 35 cents in the year-ago quarter. The consensus mark for revenues stands at $181.5 million, indicating a decline of 87.5% from the prior-year quarter.

Factors to Note

The impact of the coronavirus pandemic is expected to get reflected in AMC Entertainment’s fourth-quarter results. The coronavirus related woes might have impacted revenues at admissions, food and beverage, and other theatre segments. The Zacks Consensus Estimate for Admissions is pegged at $102 million, suggesting a decline of 88.4% from the prior-year quarter. Although majority of theatres are operating, limited seating capabilities may have impacted the to-be-reported quarter’s performance. Moreover, high costs are likely to have weighed on the fourth-quarter performance.

Due to the pandemic, domestic and international attendance was down 97% and 82%, respectively. The dismal attendance trend may have continued in the fourth-quarter 2020 as well.

However, increased focus on operational efficiencies, digital enhancement and cost saving initiatives are likely to have benefited the company in the to-be-reported quarter. Moreover, the company may have gained from encouraging international average ticket price and food and beverage spend per person.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for AMC Entertainment this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. But that's not the case here.

Earnings ESP: AMC Entertainment has an Earnings ESP of +14.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: AMC Entertainment carries a Zacks Rank #2.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks With Favorable Combination

Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these too have the right combination of elements to deliver an earnings beat.

Camping World Holdings (NYSE:CWH), Inc. CWH has an Earnings ESP of +45.46% and a Zacks Rank #2.

Churchill Downs (NASDAQ:CHDN) Incorporated CHDN has an Earnings ESP of +146.91% and a Zacks Rank #2.

American Outdoor Brands (NASDAQ:SWBI), Inc. AOUT has an Earnings ESP of +15.15% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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